Friday, January 10, 2014

Mel Watt and the upcoming forcast

Start with his first action — delay of the fee increases. There’s a reason
that the National Association of Realtors, the Mortgage Bankers Association,
the National Association of Home Builders and various nonprofit community
groups were so happy with Watt’s move.

Keep in mind that Watt also has ties to Wall Street and the
financial community ... so his door will be open to them."

Not only had they been highly critical of DeMarco’s plans, but Watt affirmed
— boldly, before even taking office — the very views that caused them to
support his nomination: He is openly, unabashedly and dependably pro-housing to
the core.

Not just in favor of affordable housing for the middle- and upper-income
borrowers with 770 FICO scores who had become the profitable mainstays of
Fannie and Freddie under DeMarco, but pro-housing for more marginal homebuyers
— the very people the mortgage giants were directed to serve under the HUD
housing goals during the Clinton and Bush years.

So when Watt postponed the fee hikes, he was really saying: I am not going
to make homeownership any more expensive or difficult to achieve than it
already is. Forget these increases. They’re dead.What else might be on his agenda? He’s not talking publicly. Nor are the
White House domestic policy advisers, who’ll have greater leverage during his
stewardship at FHFA than they ever had with DeMarco.

But a potentially useful guide to where FHFA may be headed is the detailed
to-do list set out for Watt by the Center for American Progress, an influential
voice on housing policy in Washington.
The Center describes itself as a “nonpartisan institute,” but it has a distinct
lean to the left and strong ties to both the Obama and the Clinton administrations.

Its founder and chairman, John Podesta, former chief of staff for Bill
Clinton, was recently hired by Obama as a top White House counselor.Podesta summed up his approach in a discussion with Politico: Given
effective control of the House by extreme right-wing Republicans, he said,
Obama should “focus on executive action” — pushing a progressive domestic
agenda that requires no approval by Congress but has significant impacts.With a liberal Democratic ally now running FHFA — the highest-impact player
in the housing and mortgage marketplace — the agency is a perfect vehicle for
advancing that type of strategy.

What’s on the Center for American Progress’ list for Watt? At the top:
Restore Fannie and Freddie’s earlier “focus on working and middle income
families” and jettison DeMarco’s “myopic focus on restoring the short-term
(financial) health of Fannie Mae and Freddie Mac.” The latter approach may have
helped produce billions in payments to the Treasury, but it “has harmed not only
individual families but also the housing market as a whole.”

Next, “develop a principal reduction program to prevent foreclosures.”
DeMarco’s refusal to allow principal forgiveness in connection with troubled
loan workouts infuriated Democrats in Congress and community groups, and was a
key reason why Obama brought in Watt. He’ll deliver the goods.Also on the agenda:

Reverse DeMarco’s decision to
“punish states for protecting homeownership during the foreclosure
process.” Watt has already done this — at least prospectively. As part of
the delay he announced for fee hikes, Watt put on ice DeMarco’s plan to
leave controversial “adverse market fees” in place for new mortgages on
properties in four states — Connecticut, Florida, New Jersey and New York
— where judicial foreclosure timelines are unusually long.

Restrain guarantee-fee
(G-fee) increases, which under DeMarco have moved from about 21 basis
points to more than 50 basis points. Already accomplished by the delay.

Fulfill the “duty to serve”
rule given to FHFA by the Housing and Economic Recovery Act of 2008
(HERA). This requires Fannie and Freddie to step up efforts toward (1)
increasing the availability of credit for manufactured housing, (2)
preserving/rehabilitating affordable rental units, and (3) better serving
rural areas. Watt, a Yale
Law School
graduate, is highly likely to agree to comply with the law.

Initiate a stronger push to
fund affordable rentals.

Capitalize the National
Housing Trust Fund and the Capital Magnet Fund, which support the development
of rental units affordable for very low-income families. The HERA law in
2008 directed FHFA, Fannie and Freddie to put money into these pots — a
longtime goal of Barney Frank, the former Democratic congressman from Massachusetts who
played a major role in shaping the law, but watched in frustration as
DeMarco put priorities elsewhere. Look for long-delayed action under Watt.

None of this is to suggest that Watt is going to be a puppet on strings,
taking orders from the White House, think tanks, or community groups. It’s just
that these are items that have been part of the shared agendas of Obama, Watt
and most Democrats in the House and Senate for years.

Keep in mind that Watt also has ties to Wall Street and the financial
community — the banking industry has contributed generously to his
congressional campaigns — so his door will be open to them. And also note his
legal responsibilities under the 2008 law that will restrict his ability to
return Fannie and Freddie to their former, more activist roles in promoting
homeownership.

But you can bank on most of the above to be somewhere on Watt’s work plan
for 2014. And that should be good for housing in the broadest sense.

To receive personalized rates please email me at eneal@athccorp.com with
your available times to discuss your options.

Start
with his first action — delay of the fee increases. There’s a reason
that the National Association of Realtors, the Mortgage Bankers
Association, the National Association of Home Builders and various
nonprofit community groups were so happy with Watt’s move.

Keep in mind that Watt also has ties to Wall Street and the financial community ... so his door will be open to them."

Not only had they been highly critical of DeMarco’s plans, but Watt
affirmed — boldly, before even taking office — the very views that
caused them to support his nomination: He is openly, unabashedly and
dependably pro-housing to the core.Not just in favor of affordable housing for the middle- and
upper-income borrowers with 770 FICO scores who had become the
profitable mainstays of Fannie and Freddie under DeMarco, but
pro-housing for more marginal homebuyers — the very people the mortgage
giants were directed to serve under the HUD housing goals during the
Clinton and Bush years.So when Watt postponed the fee hikes, he was really saying: I am not
going to make homeownership any more expensive or difficult to achieve
than it already is. Forget these increases. They’re dead.What else might be on his agenda? He’s not talking publicly. Nor are
the White House domestic policy advisers, who’ll have greater leverage
during his stewardship at FHFA than they ever had with DeMarco.But a potentially useful guide to where FHFA may be headed is the detailed to-do list set out for Watt by the Center for American Progress,
an influential voice on housing policy in Washington. The Center
describes itself as a “nonpartisan institute,” but it has a distinct
lean to the left and strong ties to both the Obama and the Clinton
administrations.Its founder and chairman, John Podesta, former chief of staff for
Bill Clinton, was recently hired by Obama as a top White House
counselor.Podesta summed up his approach in a discussion with Politico:
Given effective control of the House by extreme right-wing Republicans,
he said, Obama should “focus on executive action” — pushing a
progressive domestic agenda that requires no approval by Congress but
has significant impacts.With a liberal Democratic ally now running FHFA — the highest-impact
player in the housing and mortgage marketplace — the agency is a perfect
vehicle for advancing that type of strategy.What’s on the Center for American Progress’ list for Watt? At the
top: Restore Fannie and Freddie’s earlier “focus on working and middle
income families” and jettison DeMarco’s “myopic focus on restoring the
short-term (financial) health of Fannie Mae and Freddie Mac.” The latter
approach may have helped produce billions in payments to the Treasury,
but it “has harmed not only individual families but also the housing
market as a whole.”Next, “develop a principal reduction program to prevent
foreclosures.” DeMarco’s refusal to allow principal forgiveness in
connection with troubled loan workouts infuriated Democrats in Congress
and community groups, and was a key reason why Obama brought in Watt.
He’ll deliver the goods.Also on the agenda:

Reverse DeMarco’s decision to “punish states for protecting
homeownership during the foreclosure process.” Watt has already done
this — at least prospectively. As part of the delay he announced for fee
hikes, Watt put on ice DeMarco’s plan to leave controversial “adverse
market fees” in place for new mortgages on properties in four states —
Connecticut, Florida, New Jersey and New York — where judicial
foreclosure timelines are unusually long.

Restrain guarantee-fee (G-fee) increases, which under DeMarco have
moved from about 21 basis points to more than 50 basis points. Already
accomplished by the delay.

Fulfill the “duty to serve” rule given to FHFA by the Housing and
Economic Recovery Act of 2008 (HERA). This requires Fannie and Freddie
to step up efforts toward (1) increasing the availability of credit for
manufactured housing, (2) preserving/rehabilitating affordable rental
units, and (3) better serving rural areas. Watt, a Yale Law School
graduate, is highly likely to agree to comply with the law.

Initiate a stronger push to fund affordable rentals.

Capitalize the National Housing Trust Fund and the Capital Magnet
Fund, which support the development of rental units affordable for very
low-income families. The HERA law in 2008 directed FHFA, Fannie and
Freddie to put money into these pots — a longtime goal of Barney Frank,
the former Democratic congressman from Massachusetts who played a major
role in shaping the law, but watched in frustration as DeMarco put
priorities elsewhere. Look for long-delayed action under Watt.

None of this is to suggest that Watt is going to be a puppet on
strings, taking orders from the White House, think tanks, or community
groups. It’s just that these are items that have been part of the shared
agendas of Obama, Watt and most Democrats in the House and Senate for
years.Keep in mind that Watt also has ties to Wall Street and the financial
community — the banking industry has contributed generously to his
congressional campaigns — so his door will be open to them. And also
note his legal responsibilities under the 2008 law that will restrict
his ability to return Fannie and Freddie to their former, more activist
roles in promoting homeownership.But you can bank on most of the above to be somewhere on Watt’s work
plan for 2014. And that should be good for housing in the broadest
sense. - See more at:
http://www.inman.com/2013/12/31/watts-vision-of-fannie-and-freddies-role-good-for-housing-in-the-broadest-sense/#sthash.AEwepT2q.dpuf

Start
with his first action — delay of the fee increases. There’s a reason
that the National Association of Realtors, the Mortgage Bankers
Association, the National Association of Home Builders and various
nonprofit community groups were so happy with Watt’s move.

Keep in mind that Watt also has ties to Wall Street and the financial community ... so his door will be open to them."

Not only had they been highly critical of DeMarco’s plans, but Watt
affirmed — boldly, before even taking office — the very views that
caused them to support his nomination: He is openly, unabashedly and
dependably pro-housing to the core.Not just in favor of affordable housing for the middle- and
upper-income borrowers with 770 FICO scores who had become the
profitable mainstays of Fannie and Freddie under DeMarco, but
pro-housing for more marginal homebuyers — the very people the mortgage
giants were directed to serve under the HUD housing goals during the
Clinton and Bush years.So when Watt postponed the fee hikes, he was really saying: I am not
going to make homeownership any more expensive or difficult to achieve
than it already is. Forget these increases. They’re dead.What else might be on his agenda? He’s not talking publicly. Nor are
the White House domestic policy advisers, who’ll have greater leverage
during his stewardship at FHFA than they ever had with DeMarco.But a potentially useful guide to where FHFA may be headed is the detailed to-do list set out for Watt by the Center for American Progress,
an influential voice on housing policy in Washington. The Center
describes itself as a “nonpartisan institute,” but it has a distinct
lean to the left and strong ties to both the Obama and the Clinton
administrations.Its founder and chairman, John Podesta, former chief of staff for
Bill Clinton, was recently hired by Obama as a top White House
counselor.Podesta summed up his approach in a discussion with Politico:
Given effective control of the House by extreme right-wing Republicans,
he said, Obama should “focus on executive action” — pushing a
progressive domestic agenda that requires no approval by Congress but
has significant impacts.With a liberal Democratic ally now running FHFA — the highest-impact
player in the housing and mortgage marketplace — the agency is a perfect
vehicle for advancing that type of strategy.What’s on the Center for American Progress’ list for Watt? At the
top: Restore Fannie and Freddie’s earlier “focus on working and middle
income families” and jettison DeMarco’s “myopic focus on restoring the
short-term (financial) health of Fannie Mae and Freddie Mac.” The latter
approach may have helped produce billions in payments to the Treasury,
but it “has harmed not only individual families but also the housing
market as a whole.”Next, “develop a principal reduction program to prevent
foreclosures.” DeMarco’s refusal to allow principal forgiveness in
connection with troubled loan workouts infuriated Democrats in Congress
and community groups, and was a key reason why Obama brought in Watt.
He’ll deliver the goods.Also on the agenda:

Reverse DeMarco’s decision to “punish states for protecting
homeownership during the foreclosure process.” Watt has already done
this — at least prospectively. As part of the delay he announced for fee
hikes, Watt put on ice DeMarco’s plan to leave controversial “adverse
market fees” in place for new mortgages on properties in four states —
Connecticut, Florida, New Jersey and New York — where judicial
foreclosure timelines are unusually long.

Restrain guarantee-fee (G-fee) increases, which under DeMarco have
moved from about 21 basis points to more than 50 basis points. Already
accomplished by the delay.

Fulfill the “duty to serve” rule given to FHFA by the Housing and
Economic Recovery Act of 2008 (HERA). This requires Fannie and Freddie
to step up efforts toward (1) increasing the availability of credit for
manufactured housing, (2) preserving/rehabilitating affordable rental
units, and (3) better serving rural areas. Watt, a Yale Law School
graduate, is highly likely to agree to comply with the law.

Initiate a stronger push to fund affordable rentals.

Capitalize the National Housing Trust Fund and the Capital Magnet
Fund, which support the development of rental units affordable for very
low-income families. The HERA law in 2008 directed FHFA, Fannie and
Freddie to put money into these pots — a longtime goal of Barney Frank,
the former Democratic congressman from Massachusetts who played a major
role in shaping the law, but watched in frustration as DeMarco put
priorities elsewhere. Look for long-delayed action under Watt.

None of this is to suggest that Watt is going to be a puppet on
strings, taking orders from the White House, think tanks, or community
groups. It’s just that these are items that have been part of the shared
agendas of Obama, Watt and most Democrats in the House and Senate for
years.Keep in mind that Watt also has ties to Wall Street and the financial
community — the banking industry has contributed generously to his
congressional campaigns — so his door will be open to them. And also
note his legal responsibilities under the 2008 law that will restrict
his ability to return Fannie and Freddie to their former, more activist
roles in promoting homeownership.But you can bank on most of the above to be somewhere on Watt’s work
plan for 2014. And that should be good for housing in the broadest
sense. - See more at:
http://www.inman.com/2013/12/31/watts-vision-of-fannie-and-freddies-role-good-for-housing-in-the-broadest-sense/#sthash.AEwepT2q.dpuf

Start
with his first action — delay of the fee increases. There’s a reason
that the National Association of Realtors, the Mortgage Bankers
Association, the National Association of Home Builders and various
nonprofit community groups were so happy with Watt’s move.

Keep in mind that Watt also has ties to Wall Street and the financial community ... so his door will be open to them."

Not only had they been highly critical of DeMarco’s plans, but Watt
affirmed — boldly, before even taking office — the very views that
caused them to support his nomination: He is openly, unabashedly and
dependably pro-housing to the core.Not just in favor of affordable housing for the middle- and
upper-income borrowers with 770 FICO scores who had become the
profitable mainstays of Fannie and Freddie under DeMarco, but
pro-housing for more marginal homebuyers — the very people the mortgage
giants were directed to serve under the HUD housing goals during the
Clinton and Bush years.So when Watt postponed the fee hikes, he was really saying: I am not
going to make homeownership any more expensive or difficult to achieve
than it already is. Forget these increases. They’re dead.What else might be on his agenda? He’s not talking publicly. Nor are
the White House domestic policy advisers, who’ll have greater leverage
during his stewardship at FHFA than they ever had with DeMarco.But a potentially useful guide to where FHFA may be headed is the detailed to-do list set out for Watt by the Center for American Progress,
an influential voice on housing policy in Washington. The Center
describes itself as a “nonpartisan institute,” but it has a distinct
lean to the left and strong ties to both the Obama and the Clinton
administrations.Its founder and chairman, John Podesta, former chief of staff for
Bill Clinton, was recently hired by Obama as a top White House
counselor.Podesta summed up his approach in a discussion with Politico:
Given effective control of the House by extreme right-wing Republicans,
he said, Obama should “focus on executive action” — pushing a
progressive domestic agenda that requires no approval by Congress but
has significant impacts.With a liberal Democratic ally now running FHFA — the highest-impact
player in the housing and mortgage marketplace — the agency is a perfect
vehicle for advancing that type of strategy.What’s on the Center for American Progress’ list for Watt? At the
top: Restore Fannie and Freddie’s earlier “focus on working and middle
income families” and jettison DeMarco’s “myopic focus on restoring the
short-term (financial) health of Fannie Mae and Freddie Mac.” The latter
approach may have helped produce billions in payments to the Treasury,
but it “has harmed not only individual families but also the housing
market as a whole.”Next, “develop a principal reduction program to prevent
foreclosures.” DeMarco’s refusal to allow principal forgiveness in
connection with troubled loan workouts infuriated Democrats in Congress
and community groups, and was a key reason why Obama brought in Watt.
He’ll deliver the goods.Also on the agenda:

Reverse DeMarco’s decision to “punish states for protecting
homeownership during the foreclosure process.” Watt has already done
this — at least prospectively. As part of the delay he announced for fee
hikes, Watt put on ice DeMarco’s plan to leave controversial “adverse
market fees” in place for new mortgages on properties in four states —
Connecticut, Florida, New Jersey and New York — where judicial
foreclosure timelines are unusually long.

Restrain guarantee-fee (G-fee) increases, which under DeMarco have
moved from about 21 basis points to more than 50 basis points. Already
accomplished by the delay.

Fulfill the “duty to serve” rule given to FHFA by the Housing and
Economic Recovery Act of 2008 (HERA). This requires Fannie and Freddie
to step up efforts toward (1) increasing the availability of credit for
manufactured housing, (2) preserving/rehabilitating affordable rental
units, and (3) better serving rural areas. Watt, a Yale Law School
graduate, is highly likely to agree to comply with the law.

Initiate a stronger push to fund affordable rentals.

Capitalize the National Housing Trust Fund and the Capital Magnet
Fund, which support the development of rental units affordable for very
low-income families. The HERA law in 2008 directed FHFA, Fannie and
Freddie to put money into these pots — a longtime goal of Barney Frank,
the former Democratic congressman from Massachusetts who played a major
role in shaping the law, but watched in frustration as DeMarco put
priorities elsewhere. Look for long-delayed action under Watt.

None of this is to suggest that Watt is going to be a puppet on
strings, taking orders from the White House, think tanks, or community
groups. It’s just that these are items that have been part of the shared
agendas of Obama, Watt and most Democrats in the House and Senate for
years.Keep in mind that Watt also has ties to Wall Street and the financial
community — the banking industry has contributed generously to his
congressional campaigns — so his door will be open to them. And also
note his legal responsibilities under the 2008 law that will restrict
his ability to return Fannie and Freddie to their former, more activist
roles in promoting homeownership.But you can bank on most of the above to be somewhere on Watt’s work
plan for 2014. And that should be good for housing in the broadest
sense. - See more at:
http://www.inman.com/2013/12/31/watts-vision-of-fannie-and-freddies-role-good-for-housing-in-the-broadest-sense/#sthash.AEwepT2q.dpuf